Mutual funds

Press, Volume CXV, Issue 33806, 1 April 1975, Page 14

Mutual funds

Sir, — It is with some concern that I read of the record of N.Z. Mutual Funds. As an investor I feel that I am entitled to be accredited my share of the full value of the fund each year. This is not being done when I see that the funds’ properties are not being shown at their true market value. With the rise in real estate values of more than 25 per cent in the last two years and the funds’ rental and other income of just on 10 per cent the funds’ earning rate should be much greater and should be accredited to current investors and not kept to bolster up future years for future investors. — Yours, etc., INVESTOR. March 17, 1975. [The chairman of N.Z. Mutual Funds, Ltd (Mr J. R. Maddren), replies; “All properties owned by our fund

are revalued by registered - public valuers at least once > during a 10-year cycle. It is i fundamental, however, that . any increase due to revaluat tion should also relate to rent ’ reviews, as this maintains a ■ cash flow proportionate to the > increased property valuation. ; The increases in rent pro- : vided by these regular rent

reviews also give our members a valuable hedge against inflation. It would be preferable, however, for your correspondent to arrange to see the secretary of N.Z. Mutual Funds to enable his query to be dealt with in more detail.”]